Sartorius Stedim Biotech S.A. Investor Relations
A Trusted Partner for the Biopharmaceutical Industry and Laboratories
Sartorius Stedim Biotech is a leading international partner for the biopharma sector. Our solutions are supporting our customers to develop and produce drugs safely, timely and economically. The Group has been annually growing by double digits on average and has been regularly expanding its portfolio by acquisitions of complementary technologies.
Seven reasons to invest
- Clear focus on the attractive biopharma sector
- Long-term growth drivers and significant market entrance barriers
- Market leading position in key technologies and recognized brand
- High share of recurring revenue as well as diversified earnings base
- Strong presence in growth regions
- Proven track record with alliances and acquisitions
- High continuity with respect to customer base, employees and management
Sartorius Stedim Biotech | Half-Year 2020 Results
Strategy and Targets for 2025
Sartorius Stedim Biotech’s goal is to continue its profitable growth and systematically expand its position as a leading international partner for biopharmaceutical research and the industry. We are pursuing various strategic initiatives to grow sustainably up to 2025 – and beyond.
- Achieve consolidated sales revenue of around 2.8 billion euros
- Increase underlying EBITDA margin1) to around 30%
1) Sartorius Stedim Biotech uses underlying EBITDA (earnings before interest, taxes, depreciation and amortization; adjusted for extraordinary items) as the key profitability indicator.
We focus in both divisions on the attractive biopharmaceutical market characterized by long‑term and stable growth trends.
Key Growth Drivers
- Growing world population
- Increasing incomes and better access to healthcare services in emerging economies
- Aging population and rise in age-related diseases in industrialized countries
Medical progress is also fueling growth, resulting in the ongoing development and approval of new biopharmaceuticals and in the improvement or expansion of indications for already existing active pharmaceutical ingredients. Therefore, a growing number of biotech medications are being approved for treatment of rare diseases considered incurable until now, and innovative cell and gene therapies are projected to further drive growth in the biopharma sector.
Sartorius Stedim Biotech has leading market positions in core technologies and is continuously expanding its portfolio by new, complementary technologies that help our biopharma customers develop and manufacture medications faster and more easily. Our strength in selecting suitable partners or acquisition candidates is based upon our in-depth understanding of applications. We are thoroughly familiar with our customers’ requirements and their entire value-added chains, and particularly understand the interactivity of the systems they use. Our innovation strategy is based on three pillars:
- Integration of innovations through acquisitions
- Alliances with partners
- Own product development
North America and selected countries in Asia are at the focus of our growth strategy.
North America is the world’s largest market for both the development and the manufacture of biopharmaceuticals. Because North America is home to the main competitors for both company divisions, Sartorius Stedim Biotech has historically lower market shares in this region than in Europe and Asia. Accordingly, the company is striving to gain market share, primarily by strengthening its sales and service capacities.
Our second regional focus is on Asia, especially on China, South Korea and India. These markets have tremendous growth potential due to their increased healthcare spending by private households and governments. In these regions, Sartorius Stedim Biotech has invested in its sales infrastructure and is planning to expand its production capacities.
Moreover, we are investing in the digitalization of our processes. In addition, we have substantially expanded our production capacities, above all for filter and bag products.
Full-year 2020 guidance raised
For fiscal 2020, management now projects sales growth of 26 percent to 30 percent (previously 17 percent to 21 percent) and an underlying EBITDA1 margin of approximately 31 percent (previously around 30 percent), with figures given in constant exchange rates as in the past. In comparison to the former guidance a significant portion of the additionally expected business is attributable to the current coronavirus pandemic: Sartorius Stedim Biotech products are used for manufacturing both vaccines and antiviral medications.
As previously forecasted, initial consolidation of Biological Industries is expected to contribute two percentage points to sales revenue, and the inclusion of the portfolio acquired from Danaher a good three percentage points. CAPEX ratio1 is expected to be around eight percent (previous year: 9.4 percent). Net debt to underlying EBITDA1 is now forecasted at slightly below 0.5 at year-end (before: approximately 0.5; 0.3 as of Dec. 31, 2019).
Due to the ongoing pandemic, this guidance is subject to greater uncertainty than usual. In particular, these updated projections are based on the assumptions that logistics chains will continue to be stable and production lines remain in operation. All forecast figures are based on constant currencies, as in the past years.
Medium-term projections unchanged
Despite the current increase in demand, Sartorius Stedim Biotech sees no need to adjust its medium-term forecast up to 2025 at the present time. For 2025, the company continues to expect sales revenue of around 2.8 billion euros at an underlying EBITDA1 margin of approximately 30 percent. This is based on the assumption that the medium-term fundamentals of the biopharmaceutical sector remain unchanged. For example, it is currently not foreseeable whether the current additional demand from the vaccine and antiviral drug areas will lead to a sustainable increase in demand in these areas. In addition, it is becoming apparent that the market approval of some biopharmaceuticals could be delayed due to postponed clinical trials as a result of the pandemic. It is currently not possible to quantify the impact of these various effects concerning amount or timing.
1 Sartorius Stedim Biotech publishes alternative performance measures that are not defined by international accounting standards. These are determined with the aim of improving the comparability of business performance over time and within the industry.
- Underlying EBITDA: earnings before interest, taxes, depreciation and amortization and adjusted for extraordinary items
- Order intake: all customer orders contractually concluded during the respective reporting period
- Underlying net profit: profit for the period after non-controlling interest; adjusted for extraordinary items and non-cash amortization, as well as based on a normalized financial result and tax rate
- Underlying earnings per share: relevant net profit for the period divided by the number of shares outstanding (92,180,190)
- CAPEX ratio: investment payments in relation to sales revenue for the same period.
Sartorius Stedim Biotech S.A. is the parent company of the Sartorius Stedim Biotech Group. It is headquartered in Aubagne, France, and listed on the Euronext Paris.
Approximately 74% of the share capital and around 85% of the voting rights of Sartorius Stedim Biotech S.A. are held by Sartorius AG. Sartorius AG is a leading international bioprocess and laboratory equipment and technology provider headquartered in Göttingen, Germany, and listed on the Frankfurt Stock Exchange. It operates two divisions: the bioprocess business as a subgroup under its parent corporation Sartorius Stedim Biotech S.A. and the laboratory business as a further subgroup.
Half-Year 2020 Results
July 21, 2020
First-Quarter Results January to March 2020
April 21, 2020